Many entrepreneurs are capitalizing on the growing Marijuana market. GreenWave Advisors Founder and Managing Partner Matt Karnes explains the opportunity he sees in this space.

Last week, shares of Marijuana stocks dropped after Attorney General Sessions released a memo cracking down on federal regulation for the industry. "A pullback is actually welcomed. It's really hard to assess the valuations of these publicly traded companies because they don't trade on fundamentals. They just trade on use flow and data," says Karnes. "I would focus my efforts on privately held companies."

Last week, recreational marijuana became legal in California. "It accounts for about 40 percent of the retail market," says Karnes. GreenWave Advisors predicts the recreational marijuana industry in California to generate $5.2 billion in 2018.